North Vancouver, BC - Cabo Drilling Corp. ("Cabo" or the "Company") (TSX-V:CBE) today reported results for its fiscal year 2009 second quarter ended December 31, 2008.

2nd QUARTER HIGHLIGHTS

The Company reports:

• Quarterly revenue for the 2nd quarter fiscal 2009 of $11.82 million compared to $13.63 million revenue in the 2nd quarter of fiscal 2008.
• 2nd quarter fiscal 2009 earnings before interest, taxes, amortization, stock-based compensation and other items (EBITDA) of $1.44 million compared to 2nd quarter fiscal 2008 earnings before interest, tax, amortization, stock based compensation and other items (EBITDA) of $1.85 million, resulting in 2nd quarter fiscal 2009 earnings before interest, taxes, amortization, stock-based compensation and other items of $0.03 per share and $0.04 per share in the 2nd quarter of fiscal 2008.
• Net before tax earnings for the 2nd quarter of fiscal 2009 of $505,951 compared to 2nd quarter fiscal 2008 before tax earnings of $1.21 million.
• Net after tax earnings for the 2nd quarter of fiscal 2009 of $330,288 compared to net after tax earnings for the 2nd quarter of fiscal 2008 of $806,971, resulting in 2ndquarter fiscal 2009 net after tax earnings of $0.01 per share compared to net after tax earnings for 2nd quarter fiscal 2008 of $0.02 per share.
• Gross margin percentage for the 2nd quarter fiscal 2009 was 26.1% compared with a gross margin of 25.0% in 2nd quarter fiscal 2008 and 26.0% in the 1stquarter of fiscal 2009.
• Cash from operations, before changes in non-cash working capital items, was $924,014 for the 2nd quarter fiscal 2009 compared to 2nd quarter fiscal 2008 cash from operations of $1.24 million.
• A current asset balance of $22.03 million and working capital of $7.77 million.
• Total assets of $38.23 million and total liabilities of $16.74 million.

"The Company recorded revenues for the second quarter, fiscal 2009 of $11.82 million compared to the $13.63 million recorded in the second quarter of fiscal 2008," said John A. Versfelt, President and CEO of Cabo Drilling Corp. "The strength of our international divisions sector continues as 39% of quarterly revenues came from the international sector as compared to 19% in fiscal 2008. The Company has seen a decrease in gross revenue from our Canadian divisions due to decreased demand for drilling and resulting lower prices, because of the economic downturn. Management expects gross revenue from the Canadian divisions to remain low until late 2009. We are also experiencing lower demand for drilling services in our Mexico division."

"Gross margins showed a slight improvement with an increase to 26.1% in the 2nd quarter of fiscal 2009 compared to 26.0% in the 1st quarter of fiscal 2009 and 25.0% in the 2nd quarter of fiscal 2008," stated John A. Versfelt. "While we appreciate that we have experienced 26% plus gross margins for two consecutive quarters, in these difficult times, we are going to continue to work hard towards improving this number through more cost cutting measures."

"The Company recorded cash flow from operations in the 2nd quarter of fiscal 2009 of $924,014," said Mr. Versfelt. "This is comparable to $1.24 million in the 2nd quarter of fiscal 2008. It is our belief that we will be able to generate sufficient cash flow through 2009 to meet current and future working capital, capital expenditure and debt obligation requirements."

"The Company recorded a net income of $330,288 during the 2nd quarter of fiscal 2009 or $0.01 earnings per share compared to $806,971 or $0.02 earnings per share in the 2nd quarter of fiscal 2008," noted John A. Versfelt. "EBITDA decreased 22.4% to $1.44 million during the second quarter of fiscal 2009, compared to $1.85 million in the previous corresponding period. This is a direct result of a decrease in gross revenue from our Canadian divisions caused by decreased demand for drilling and resulting lower prices brought about by the economic downturn." ...

click here for complete news release

About Cabo Drilling Corp. (TSX-V: CBE)
Cabo Drilling Corp. is a drilling services company headquartered in North Vancouver, British Columbia, Canada. The Company provides mining related and specialty drilling services through its Canadian divisions in Surrey, British Columbia; Montr�al, Quebec; Kirkland Lake, Ontario; and Springdale, Newfoundland; as well as Cabo Drilling de Mexico S.A. de C.V. of Hermosillo, Mexico; Cabo Drilling (Panama) Corp. of Panama, Republic of Panama; Cabo Drilling Spain S.L. of Seville, Spain; Balkan States Drilling SH.P.K. of Tirana, Albania; and Cabo Drilling (International) Inc. The Company's common shares trade on the Frankfurt Exchange under the symbol: DHL and on the TSX Venture Exchange under the symbol: CBE.

ON BEHALF OF THE BOARD

"John A. Versfelt"

John A. Versfelt
Chairman, President and CEO

Further information about the Company can be found on the Cabo website (http://www.cabo.ca) and SEDAR (www.sedar.com) or by contacting Investor Relations, Sheri Barton, at 403-217-5830 or Mr. John A. Versfelt, Chairman, President & CEO of the Company at 604-984-8894..

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, potential mineral recovery processes and other business transactions timing. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

Cabo Drilling Corp. was recognized as a TSX Venture 50T company in 2008. TSX Venture 50 is a trade-mark of TSX Inc. and is used under license. -